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Feb 03, 2018

Ulaanbaatar Railways to become part of the Russia - Mongolia - China economic corridor

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The Mongolian President Haltmaagiin Buttulga and the Chief Executive Officer and Chairman of the Board of OJSC Russian Railways Oleg Belozerov have discussed current issues regarding Russian-Mongolian cooperation in the development of railways.

The two men met in the Mongolian capital Ulaanbaatar on 2 February 2018.

During the meeting, Oleg Belozerov noted the positive results of the work of Ulaanbaatar Railways in 2017.

Transit shipments of containers through Mongolia increased 2.7 times and labour productivity was up 20%.

The head of Russian Railways informed the President of Mongolia about the plans to develop the infrastructure of Ulaanbaatar Railways in order to handle the growing transportation volumes. The major track overhaul planned in 2018 in particular will be double that of last year, while the modernisation of the transportation management system will be completed. As a result, the railway’s carrying capacity will be increased by 20%.

Speaking about the infrastructure component, Oleg Belozerov said that the Central Railway Corridor between Ulan-Ude – Naushki – Sukhe-Bator – Ulan-Bator – Dzamyn-Uud – Erlan was a priority in implementing the programme to create the Russia – Mongolia – China economic corridor.

Oleg Belozerov also discussed issues affecting the development of cooperation between Russia and Mongolia in the railway sector during individual meetings with Mongolian Prime Minister Ukhnaagiin Khürelsükh and the Secretary of the National Security Council of Mongolia Gansukh Amarjargal.

In particular, the parties underlined the interest in increasing the transit of freight from Mongolia towards the ports of the Far East on the infrastructure of Russian Railways. The parties also discussed issues related to the prospects for the development of Mongolia's railway infrastructure, including the use of state financing mechanisms.

JSC Ulaanbaatar Railways was established on 6 June 1949 on the basis of an agreement between the governments of the USSR and the Mongolian People's Republic. Each side had an equal holding of shares in the JSC’s authorised capital (50%-50%).

Until July 2004, the powers of the shareholder were exercised on behalf of the Russian Federation by Russia’s Ministry of Railways then by the Federal Agency for Railway Transport. Since December 2009, OJSC Russian Railways has entered into the rights of trust manager for the Russian shareholding.

JSC Ulaanbaatar Railways plays a key role in providing Mongolia’s transportation links. Rail transport accounts for over 60% of the country's freight traffic.

On 2 December 2017, a meeting of the Board of JSC Ulaanbaatar Railways in Moscow considered a draft long-term rail development programme until 2030.

In accordance with the programme, a list of priority measures for the modernisation of Ulaanbaatar Railways is being developed. Between 2018 and 2020, it is planned to carry out major track repairs, update rolling stock and locomotives, build a sorting hill at Zamyn-Üüd station and implement a number of other measures, including passenger transport.

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